Very soon, fund houses will share details of capital gains booked or losses realized by mutual fund investors with the tax authorities.
The Central Board of Direct Taxes (CBDT) has reportedly asked SEBI to issue a notification directing fund houses to share details of capital gains booked or losses realized by mutual fund investors with the tax authorities. Further, the market regulator may also share the format in which such a report has to be made. This was discussed at a recent meeting of the government with SEBI, stock exchanges, RTAs and depositories held yesterday in New Delhi, said two people familiar with the development.
With this, fund houses will have to share details like value of investment, redemption value and profit or loss made if any at PAN level. Currently, RTAs share details of mutual fund investors who invest Rs.10 lakh and above a year.
A senior fund official said that the MF industry is ready to share such reports. “The MF industry has systems and processes in place to track these details of investors. In fact, the industry is ready to submit these reports with immediate effect.”
Such a report will help the income tax department to generate pre-filled forms aimed at easing the tax filing process and eliminate dependence on CAs or tax advisors to calculate capital gains tax on financial assets.
Starting the next financial year, mutual fund investors can check transactions on their pre filled income tax returns form, pay taxes if any or submit their form online.
